Tuesday 13 October 2015

foreign aid: why not supply goods which have the biggest price increases?

Angus Deaton from Princeton University won the 2015 economics Nobel Prize, everyone thinks he is well deserved. I want to discuss his opinion on foreign aid. Mr Deaton says, "I am in favour of giving money not just in Africa, but for Africa". There is a difference between "in Africa" and "for Africa". "For Africa" has purposes, but "in Africa" does not need one. I always think foreign aid does not help a lot, here Mr Deaton tells me the answer of it. Inspired by Mr Deaton, I feel that it is extremely important to do market researches before giving out aids. Amount does not matter, if money is spent in correct purposes. Moreover, I think we can also rely on the market in the developing world itself. The market can distribute scant resources in the most needed field. Therefore, why not supply goods which have the biggest price increases? The goods have the biggest price increases, usually the goods most needed in the market.

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